South Plains Financial, Inc. (NASDAQ:SPFI) Announces Quarterly Dividend of $0.17

Key Points

• South Plains Financial (NASDAQ:SPFI) declared a quarterly dividend of $0.17 per share, payable May 11 to shareholders of record on April 27 (ex-dividend April 27), representing an annualized $0.68 and a ~1.6% yield.
• The dividend appears well covered and sustainable: SPFI has raised its dividend for five consecutive years (average annual increase ~0.3%) and maintains a low payout ratio of 20.2%, with analysts projecting next-year earnings that keep the payout near ~20.7%.
• Operationally, the company beat Q results (EPS $0.90 vs. $0.84 est.), trades at a P/E of ~12.6 with a market cap of about $708M, and holds a consensus "Moderate Buy" rating with a $46.75 price target.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) announced a quarterly dividend on Thursday, April 16th. Investors of record on Monday, April 27th will be given a dividend of 0.17 per share on Monday, May 11th. This represents a c) dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Monday, April 27th.

South Plains Financial has increased its dividend payment by an average of 0.3%annually over the last three years and has increased its dividend annually for the last 5 consecutive years. South Plains Financial has a payout ratio of 20.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect South Plains Financial to earn $3.28 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 20.7%.

South Plains Financial Stock Performance

South Plains Financial stock opened at $43.30 on Friday. The firm has a market capitalization of $707.52 million, a P/E ratio of 12.59 and a beta of 0.54. The company's 50-day moving average is $42.06 and its 200 day moving average is $40.04. South Plains Financial has a 1-year low of $31.49 and a 1-year high of $44.58. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.94 and a quick ratio of 0.94.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last issued its earnings results on Monday, January 26th. The company reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.84 by $0.06. The business had revenue of $54.25 million for the quarter, compared to analyst estimates of $54.11 million. South Plains Financial had a net margin of 19.69% and a return on equity of 12.51%. Research analysts forecast that South Plains Financial will post 2.85 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Hovde Group raised their target price on shares of South Plains Financial from $47.00 to $49.00 and gave the stock an "outperform" rating in a research report on Tuesday, January 27th. Zacks Research lowered shares of South Plains Financial from a "strong-buy" rating to a "hold" rating in a research report on Friday, March 27th. Raymond James Financial raised their target price on shares of South Plains Financial from $42.00 to $44.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 7th. Piper Sandler upgraded shares of South Plains Financial from a "neutral" rating to an "overweight" rating and increased their price objective for the company from $45.00 to $48.00 in a research note on Monday, March 2nd. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of South Plains Financial in a research note on Monday, December 22nd. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $46.75.

South Plains Financial Company Profile

South Plains Financial, Inc is the bank holding company for South Plains Bank, a community-oriented financial institution headquartered in Lubbock, Texas. The company operates as a full-service commercial bank, providing a broad spectrum of banking solutions to individuals, small businesses and agricultural clients. Its principal subsidiary, South Plains Bank, holds state and national banking charters and is subject to regulatory oversight by the Federal Reserve and various state banking authorities.

The company’s product offerings include traditional deposit accounts such as checking, savings and money market accounts, as well as time deposits.

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